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After the national election on who will be the next President of the United States and which party will hold the reins of the American Parliament, the results have already started to come out. At this time, the major stock markets around the world are carefully watching the latest developments in American politics, according to experts.
A week before the election, the stock market index fell slightly as the predictions of a very tough competition between former President Donald Trump and the current Vice President Kamala Harish were announced. They improved around the election. The mood on Wall Street which became positive on the election day has also touched the major Asian markets.
Major Asian markets opened modestly higher as election results came in. When the Asian market opened on Wednesday, Japan's Nikkei rose 1.4 percent, Hong Kong's Hang Seng index rose 1.4 percent, Shanghai's composite index rose 1.9 percent, South Korea's KPSI rose 0.4 percent and Australia's S&P ASX rose 0.7 percent.
Earlier, American and European stock markets closed in positive mode, being optimistic about the new economic policies and programs that may be announced around the results of the American elections. Most of the world's major markets were modestly lower during the week of the election. But on the day of the election, the US S&P and Dow Jones rose by about 2 percent and the Nasdaq rose by about 3 percent.
Japan's Nikkei fell nearly 2.5 percent on the eve of the election, but China's SSE Composite showed a modest improvement of 1.2 percent. Stock markets in UK, Germany and France, which fell by 1.2, 1.8 and 1.5 percent before the election, closed up by 1, 1.5 and 1.2 percent respectively on the day of the election. Even in neighboring India, Sensex and Nifty, which fell by more than 1 percent before the election, rose by 1.5 and 1.2 percent on election day.
Global Markets senior analyst Jane Smith has expressed the opinion that the ups and downs of the election week are normal and the markets will improve with the clarity of the election results. John Doe, another economist at Financial Insights, also expressed the opinion that the newly elected president's signal would increase confidence in the market. He says, 'The excitement that a major election like America brings to the world's stock market depends on the announcement of the upcoming economic stability and financial concessions . Investors are sure to follow the same trend this time too.'
Various experts are of the opinion that the main investors of the big market prefer the situation of Trump winning. If Trump is elected, short-term concessions will increase, the technology sector will progress and aggressive policies will come, but the additional taxes and trade tightening policies announced by him during the election campaign are expected by investors to affect some markets in Europe and Asia .
Similarly, if Harish is elected, the market expects concessions like renewable energy, real estate and improvement in interest rates. Investment analyst Sam Stovall says, 'No matter who comes to the White House, the market is expected to improve .'
